Buying a House in Spain as a Foreigner: Step-by-Step Guide

Spain is one of the most attractive destinations to live, retire, or invest in property. In 2024, nearly 93,000 homes were purchased by foreigners — a figure that confirms the strong international interest in settling in the country. If you’re thinking about buying a house in Spain and don’t hold Spanish nationality, this guide will help you understand the essential steps and key requirements of the process.

1. Obtain the NIE: the first mandatory step

The NIE (Foreigner Identification Number) is essential for carrying out any legal activity in Spain, including purchasing a property. You can apply for it:

• From your country of origin, via the Spanish consulate.

• In Spain, at the immigration offices.

Types of NIE:

• Non-resident NIE: if you won’t live in Spain permanently.

• Resident NIE: if you’ll stay more than 183 days a year in Spain.

• Temporary NIE for EU citizens: for those only staying during the purchase process.

Legal assistance can help speed up this procedure.

2. Open a Spanish bank account

Not mandatory, but highly recommended. A local account simplifies the payment of taxes, notary fees, and other related costs. It also avoids transfer delays or fees. If you’re planning to apply for a mortgage, it’s advisable to open the account in the same bank.

3. Search for financing (mortgage)

If you need a mortgage, start exploring your options early. Compare interest rates (fixed, variable, mixed) and conditions. Non-residents usually need a higher deposit, up to 30% of the property’s value.

4. Sign the reservation contract

This contract ensures that the property is taken off the market while the sale is being finalized. It’s not mandatory, but commonly used, and reflects the commitment between buyer and seller.

5. Down payment agreement (“arras”)

This formal agreement includes an initial payment (usually 10% of the price) and a strong commitment. If either party fails to comply, penalties may apply. There are different types of arras contracts, so getting legal advice is wise.

6. Official property valuation

To get mortgage approval, an official valuation is required to determine the real market value. The bank can appoint an appraiser, or you can hire one independently.

7. Document verification

Before the notary signing, review these documents:

• Simple note (Nota Simple): legal info and existing charges.

• Building Technical Inspection (ITE): required for some buildings.

• Debt history: to avoid future surprises.

• Public deed: confirms property ownership.

A lawyer and, in some cases, an architect can help verify this information.

8. Signing before a notary

The notary drafts and formalizes the public deed. Present at the signing:

• Buyer and seller

• Bank representative (if mortgage involved)

• Real estate agent

• Lawyer (optional)

• The notary

Once signed and paid, you’ll receive the keys.

9. Property registration

The final step to be recognized as the legal owner. Then, utility contracts (water, electricity, gas, etc.) must be transferred to your name.

10. Costs and taxes when buying property in Spain

In addition to the price, you should consider:

Taxes:

• Property Transfer Tax (used homes): 6%–10% depending on region.

• VAT (new homes): 10% of the purchase price.

Additional costs:

• Notary: €500–€1,000

• Property registry: 0.1%–0.25% of the price

• Valuation: €250–€600

• Legal fees: if hiring a lawyer or consultant

Overall, budget an additional 10%–12% over the purchase price.

Why is it advisable to work with a real estate agent?

An experienced agent can save you time, paperwork, and complications. They know the local market and every legal and tax requirement to ensure a smooth and safe transaction.

They also help negotiate the best price, find the right property for your needs, and connect you with trusted lawyers, appraisers, and notaries.